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FTX to Auction Off Locked Solana Tokens, Seeks Higher Price

FTX is auctioning off its $7.5 billion worth of SOL in the hopes of fetching a higher price than the original liquidation plan of direct sale.

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FTX will be auctioning off its remaining Solana (SOL) holdings in an attempt to fetch a higher price than direct sales.

The bankrupt exchange's initial liquidation plan was to sell its $7.5 billion worth of SOL at fixed market prices. It began selling SOL last month at discounts. One transaction saw the sale of 26,964 SOL at $64 per token - 67% lower than market value at the time.

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Figure Markets, a blockchain ecosystem that engages in auctions, is establishing a Special Purpose Vehicle (SPV) to facilitate participation from non-U.S. and accredited U.S. investors. $1 will equate to one vote. Parties can use USD, USDC, Bitcoin and Ether to participate.

Creditors have supported the auction-based approach compared to the fixed-price sale agreement.

Suni Kavuri, an activist representing some of the creditors, lauded the auction for offering a more accessible entry point for small investors; the minimum investment is $5K compared to $5 million.

Earlier this month, Voyager Digital recovered $484.35 million through settlements from FTX, 3AC, and Directors and Officers (D&O) insurance. Some $450 million of the funds came from a settlement from FTX according to a recent filing.

Voyager Digital Recovers $484M From FTX, 3AC Settlements
Voyager Digital has recovered $484.35 million through settlements from FTX, 3AC, and D&O with more payments expected to be disbursed in the coming years

Meanwhile, FTX founder Sam Bankman-Fried is appealing his 25-year prison sentence. SBF was handed the sentence in March for stealing $8 billion from FTX customers. He was convicted in November on seven counts of fraud and conspiracy.

Sam Bankman-Fried Pays $605 to Appeal 25-Year Prison Sentence, Crypto Twitter Unconvinced
SBF is appealing his 25-year prison sentence and fraud conviction but on what grounds?